Actively managed exchange traded fund using AP representatives for creation and redemption

US7813987B1 · kind B1 · utility

Assignee

• D12 Ventures, LLC · US

Inventors

• Paul Edward Kuhnle · Doylestown, US
• George Tedesche Simon · Robinson Township, US
• John Stuart Thomas · Morristown, US
• Mark Steven Criscitello · Colts Neck Township, US
• Daniel Joseph McCabe · Upper Saddle River, US

Key dates

• Filing date: Jun 5, 2007
• Grant date: Oct 12, 2010
• Expiry date: Jun 5, 2027

Classification

• Technology area (CPC G): Physics
• CPC primary: G06Q40/04
• WIPO field: IT methods for management
• WIPO sector: Electrical engineering

Abstract

An ETF creation and redemption mechanism for use in managed Exchange Traded Fund (ETF) that retains the confidentiality of the ETF assets. An agency relationship is established with an AP representative who receives the underlying securities from the ETF as part of a like kind exchange in a redemption event. In an alternative embodiment, the AP representative may be used to obtain the portfolio securities as directed by the ETF to perform a creation event. The representative relationship is preferably established by an authorized participant (AP) according an agreement between the AP and the ETF.